Case Study: Essex Mixed Use May 2016

For more information please call +44 (0)203 397 8290, email us at [email protected] or visit www.proplend.com

Essex - Bexleyheath & Erith Mixed UseProplend Case Study

Retail OfficeIndustrial

MAY 2016


Executive Summary

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The Essex, Bexleyheath & Erith Mixed Use Loan was drawn down by theborrower in May 2015. The £978,000 loan represented a 75% Loan-to-Value(LTV) and was secured with a first legal charge over the properties.

The Loan remains in Active Good Standing, with no late or missed payments and 12 months left on the loan term.

This Loan Investment has offered attractive returns to all investors over the past year, and to date investors have received a total of £75,491* in interest.

*Total amount paid net to lenders as of May 23rd, 2016.Assuming interest is not re-invested.

With 12 of the 24 month term left, we look at the details of the Loan andreview its performance to date.

Tranche A Tranche B Tranche C£45,479* £17,167* £12,845*


The Borrower is a local businessman and developer with two mixed use,freehold, multi-tenant commercial properties on busy trunk roads in Essex(Bexleyheath & Erith).

The Bexleyheath property comprises two retail units fronting the Broadwayand three storage units / open yard area to the rear that is situated awayfrom the main retail pitch, amongst a large tertiary mix of local traders. Thereare 3 tenants (no vacancies), which yield an annual income of £53,000.

The Erith property comprises a car showroom with forecourt, an additionalcar maintenance workshop to the rear, and two other buildings, which areoccupied by vehicle paint spraying and bodyworks repairs businesses. Thereare 3 tenants (no vacancies), which yield an annual income of £53,744.

The combined annual income is £106,744. The interest expense is £83,927,giving an interest cover of 1.27x.

Borrower & Properties

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LOAN

The Loan of £978,000 represents 75% LTV for a period of 2 years commencingMay 2015. The Borrower still intends to apply for planning permission on bothProperties to develop residential units. He will then seek developmentfinance or sell ei ther of the Properties with the benefit of the planningpermission.

The Loan covered all three tranches as follows:

Tranche C: 11.00% pa*Tranche B: 9.75% pa*Tranche A: 7.75% pa*

*Before fees, bad debt and taxes

SECURITY

ü The Loan is supported by a first legal charge over the properties.

ü Six months of interest (£41,963) was retained at drawdown from the gross loan amount.

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Loan & Security


Proplend aims to align itself with its Lenders by only charging a fee wheninterest is collected and paid into their Lender Account. The net annual rates(after fees) are as follows:

Tranche C: 9.90% pa*Tranche B: 8.77% pa*Tranche A: 6.97% pa*

*After fees but before bad debts and taxes

If you had invested £25,001 in this Loan at the In Funding stage, your NETreturn to date would be:

Please note that investments made through Peer-to-Peer Lending platforms are notcovered by the Financial Services Compensation Scheme (FSCS) and so your capitaland interest are not guaranteed. Savings rate used is 2.0% (AER)** and is for comparisonpurposes only. Tranche returns are shown net of fees but before tax. Capital is returnedas a bullet payment at the end of the tem.

**State Bank of India 2% (AER) source: www.moneysavingexpert.com

Investor Returns

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Although the Loan is monitored monthly, Proplend conducts an Annual Review of all loans listed on the platform. The Annual Review for Essex, Bexleyheath & Erith Mixed Use was conducted and published in May 2016, approximately one year after the Borrower drew the loan down and is available in the documents section of the platform.

There were no material changes to the property, the tenant or the Borrower’s circumstances, and the Loan remains in Active Good Standing with no late or missed interest payments.

For full details of the Annual Review please LOGIN to your Proplend Lender Dashboard and go to the Documents section of the Essex, Bexleyheath & Erith Mixed Use Loan Investment.

Annual Review

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For more information please call +44 (0)203 397 8290, email us at [email protected] or visit www.proplend.com6

Contact

Contact Details:

Brian Bartaby – Founder & [email protected]

Benjamin Butterworth – Head of Lender [email protected]

Office+44 (0) 203 397 8290

DISCLAIMERProplend operates a peer to peer lending platform specialising in commercial property loans supported by first charge mortgages. Whilst loan investments are secured against property, capital is still at risk and therefore Proplend lenders face the possibility of losing money. Investments in commercial loans are long term in nature and may not readily be realisable.

Proplend Ltd is incorporated in England and Wales registered number 08315922, registered address 145-157 St John Street, London EC1V 4PW. Proplend Ltd is authorised and regulated by the Financial Conduct Authority (firm registration no. 662661). Lenders on Proplend and other P2P platforms are not covered by the Financial Service Compensation Scheme.

If you are in any doubt as to whether lending on Proplend is suitable for you, we recommend that you seek independent financial advice.

Case Study: Essex Mixed Use May 2016

Economy & Finance

Transcript of Case Study: Essex Mixed Use May 2016